CIMB Group is selling its Thai unit’s auto financing portfolio to Krungsri as it shifts capital towards higher-return banking segments.

The portfolio will be sold to Bank of Ayudhya Public Company Limited and its subsidiary, collectively known as Krungsri, at a modest premium to adjusted net book value.

The sale is part of CIMB’s Forward30 strategy to exit non-core businesses and reallocate capital across its ASEAN franchise.

It also forms part of CIMB Thai’s wider transformation programme, which includes operating model changes, branch and cost base optimisation, portfolio rebalancing, and a shift towards wealth management and regional wholesale banking.

The group expects CIMB Thai’s return on equity to move towards double-digit levels over the medium term after the transformation is completed.

CIMB added that its earlier guidance for 2026 financial targets already includes the impact of the sale and related one-off cost.

Novan Amirudin, Group CEO of CIMB Group, said,

“We are strengthening the capital allocation and positioning of CIMB Thai for more sustainable profitability and growth.

The restructuring enhances CIMB Thai’s competitiveness and focus, while allowing the group to redeploy capital into priority growth areas that deliver stronger long term shareholder returns.”

Thailand remains an important market for the group’s regional platform, with CIMB Thai continuing to support intra-ASEAN trade and investment flows, cross-border corporate banking, affluent banking opportunities and regional client connectivity.

Featured image: Edited by Fintech News Malaysia, based on image by CIMB